Valero reports strong Q2 for renewables
July 25, 2024
BY Erin Voegele
Valero Energy Corp. released second quarter financial results on July 25, reporting strong performance for both its ethanol and renewable diesel segments. The company’s sustainable aviation fuel (SAF) project in Texas remains on track to begin operations later this year.
Valero’s ethanol segment produced an average of 4.5 million gallons per day during the second quarter of this year, up 31,000 gallons per day when compared to the same period of 2023. The segment reported $105 million in operating income for the second quarter, down from $127 million during the same quarter of last year.
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During an earnings call, Valero Vice President of Investor Relations and Finance Homer Bhullar said the ethanol segment is expected to produce 4.6 million gallons per day during the third quarter of 2024.
Valero’s renewable diesel segment consists of Diamond Green Diesel, a joint venture with Darling Ingredients. Segment sales volumes averaged 3.5 million gallons per day during the second quarter, down 908,000 gallons per day when compared to the same period of last year. The renewable diesel segment reported $112 million of operating income for the second quarter of the year, down from $440 million during the same period of 2023. Valero attributed the drop in operating income to lower sales volumes resulting from planned maintenance activities and lower renewable diesel margins.
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According to Bhullar, total sales volumes for the renewable diesel segment are expected to reach approximately 1.2 billion gallons for 2024.
The SAF project under development at Diamond Green Diesel’s facility in Port Arthur, Texas, remains on track to begin operations during the fourth quarter of this year, according to Valero. The project is expected to give the facility the optionality to upgrade approximately 50% of its current 470 million gallons renewable diesel annual production capacity to SAF.
Overall, Valero reported net income attributable to Valero stockholders of $880 million, or $2.71 per share, for the second quarter of 2024, compared to $1.9 billion, or $5.40 per share, for the same period of 2023.
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